Shoppers may see production price increases in the coming days Donald TrumpTariffs on Mexico’s imports, Target CEO Brian Cornell said Tuesday.
The Trump administration’s levy on 25% of Mexican and Canadian goods, and a 10% tax on Chinese imports, will take effect on Tuesday.
Cornell said the goal is to rely heavily on Mexican agricultural products in the winter, and tariffs could force the company to raise prices of fruits and vegetables immediately this week.
“These are categories we are trying to protect pricing, but consumers may see prices going up,” he told CNBC after an interview in an interview. Target releases its fourth-quarter earnings.
“If there is a 25% tariff, these prices will rise,” Cornell added.
Prices of agricultural products such as strawberries, avocados and bananas are likely to rise, Cornell said.
Brian Cornell’s CEO Target Corp. spoke during an interview on the floor of the New York Stock Exchange on November 28, 2014.
Brendan McDermid | Reuters
although Inflation has eased In recent months, price increases have not adjusted as much as the Fed hopes. The high costs of food and housing continue to expand consumer budgets, and Trump’s tariffs have put fears that families will face higher costs. The president and his advisers believe that responsibility will not raise prices for consumers.
After the tariff concerns Consumer confidence fell in February The lowest level since 2021.
“There are some concerns about the tariffs” that have increased pressure on consumers who are already facing.
Target CEO underestimates about how Cumulative 20% of responsibilities Products about China will affect shoppers in the company’s stores. Cornell said the goal has reduced its dependence on China to 30% of more than 60% of imports.
At an investor meeting later that day, Chief Business Officer Rick Gomez said 17% of Target clothing (the company’s main high-profit category) were made in China, and retailers have moved production to countries in the Western Hemisphere, such as Guatemala and Honduras. This shift in the supply chain is key to delivering products to customers faster, and neither is the same raw material problems associated with China’s procurement of cotton.
Cornell’s comments came after Target released its fourth-quarter revenue and revenue, which exceeded Wall Street expectations.
But the company also said it expects first-quarter profits to drop “meaning” from a year ago due to weaker concerns about sales and tariffs in February due to “continuing consumer uncertainty”. Target’s guidance is the latest warning sign on economic health Joined other retailers Like Walmart, the Elf Beauty and Home Depot Weak expectations given First quarter or full year guidance.
